Forex Today: Dollar and Gold rallying amid continued search for safety

Valeria Bednarik FXStreet

What you need to take care of on Tuesday, March 8:

Risk aversion was again the main market motor amid the Russian invasion of Ukraine. The attacks have continued throughout the weekend, with multiple civil casualties and no safe corridors opened. The third round of talks ended with “small advances,” according to Kyiv representatives, although nothing that could ease the pressure on financial markets.

The American Dollar and Gold made the most out of the dismal mood, appreciating sharply. The EUR/USD pair fell to a fresh multi-month low of 1.0805 and trades nearby at the end of the day. GBP/USD also collapsed, currently changing hands a handful of pips above a multi-month low of 1.3101.

Spot gold surged to $2,002.64, its highest since August 2020 but settled at around $1,986 a troy ounce. WTI traded as high as $130.50 a barrel, pulling back to the $120 price zone where it currently stands.

The CAD and the AUD started the day advancing against the greenback but lost ground as the day developed, closing in the red. AUD/USD trades around 0.7320, while USD/CAD hovers around 1.2800.

Global indexes edged lower. European indexes recovered some ground ahead of the close, but US ones posted substantial losses, with the DJIA losing over 600 points.

The US is on track to ban all Russian energy imports, detaching from the EU with this particular sanction. President Joe Biden has anticipated the sanction, and the US Congress has agreed on it. Meanwhile, the EU aims to cut dependence on Russian gas by almost 80% in 2022, according to Bloomberg.

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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